TOOLBOX FICTIONAL PROJECT No 5

Eduardo Remolins

Submitted in partial fulfilment of the requirements for the courses Tools for Innovation Management and Research Skills in Management. MSc in Technology and Innovation Management. Science Policy Research Unit University of Susse !anuary "##$.

1- Introduction - T!e tool"o# $- Tools t!at %ere not descri"ed in t!e course &- Re'erences

1- Introduction(
T!e client. & small soft'are company 'ishing to improve its innovativeness. It recognises the need to understand innovation in a more systematic fashion. The company is looking for a general overvie'(audit of its innovative activities) and recommendations about ho' can these activities be improved. T!e )ro*ect( & useful 'ay to organise the 'ork is to divide it into different stages. To this end the present pro*ect is seen as including t'o parts+ the assessment or audit and the process of 'acilitatin+ t!e im)ro,e in com)an-.s current )ractices and )er'ormance . In relation to the 'irst )art the most suitable tool for assessment is Benc!mar/in+ ) internal at the beginning ,involving a self-assessment.) and e ternal in a second stage) involving comparisons 'ith both companies in the same sector and companies in different sectors but performing similar processes. Regarding t!e second0 and lon+er0 )art o' t!e )ro*ect ) the starting point are the common factors found in a considerable number of successful innovations and frequently absent in failures". They are+ market orientation relationship to corporate objectives evaluation techniques good project management creativity innovative environment project champion

/aving identified this common points) the aim is to search for tools to help in the developing of at least some of this features inside the company. There are not immediate solutions or 0recipes1) but a conceptual frame'ork together 'ith some applied tools are a good mean to start the construction of the particular solution needed for every organisation.
"

T'iss ,"##2.

Ten tools !a,e "een selected 1one 'or assessment and nine to !el) im)ro,e t!e inno,ation )rocess20 ta/in+ into account t!e c!aracteristics o' t!e client0 namel- a com)an- o' reduced si3e dedicated to t!e so't%are industr-. & company like that probably en*oys the advantage of having an 0organic1 form of organisation ,dynamic) fle ible) capable to learn) etc... I' t!is is t!e case t!e o"*ecti,e must "e to im)ro,e t!e 'ormal )rocess o' inno,ation "ut rein'orcin+ t!is 4or+anic5 c!aracteristics as lon+ as t!e- are t!e "est asset a com)an- could !a,e in a ra)idl- c!an+in+ en,ironment ) like soft'are sector. If this is not the case) that is) the company is small but organised in a mechanistic form and therefore) suffering from many of the problems large firms have to perform innovation activities) the ob*ective must be to change processes and procedures trying to reshape the organisation to allo' the innovation process be more efficient. In %!at 'ollo%s0 t!e 'irst )ossi"ilit- is assumed 1t!e com)an- is an or+anic one and %ants to 'ormalise more t!e inno,ation )rocess in a %a- t!at %ill not in!i"it its natural or+anisational ad,anta+e2( 3ne tool related 'ith the corporate strategy has been chosen ,technology portfolio analysis.) t'o related 'ith the evaluation of a ne' technology pro*ect ,checklist and merit number system.) and si related generally 'ith creativity) but also 'ith problem-solving across all sectors of the company ,attribute analysis) morphological analysis) needs research) brainstorming) synectics) lateral thinking.. T!e "ias to%ards creati,it--!el)in+ tools is moti,ated in t!e "elie' t!at t!is is t!e "est %a- to rein'orce t!e stren+t!s o' t!e com)an- 'or t!is s)ecial sector( In e''ect0 de,elo)in+ ne% )articular solutions 'or customers arisin+ 'rom a +eneral )ur)ose tec!nolo+- 1li/e IT20 needs "ot! closeness to t!e needs o' t!e mar/et 1and t!at in time means listen to customers2 and creati,it- and non-con,entional %a-s o' t!in/in+ to disco,er di''erent )ossi"ilities o' a))lication o' t!e core tec!nolo+ies o' t!e com)an- . Therefore) the tools selected are+ 1- Benc!mar/in+ - Tec!nolo+- )ort'olio anal-sis $- C!ec/list &- 6erit num"er s-stem 5- Attri"ute anal-sis 7- 6or)!olo+ical anal-sis 8- Needs researc! 9- Brainstormin+ :- ;-nectics
The same issue is described in the essay for the courses Inside Innovating 3rganisation and Technology) 4irms and Innovating Systems) regarding the case of an IT company .
%

1<- Lateral t!in/in+

- T!e tool"o#($
Tool 1= Benc!mar/in+ >!at is "enc!mar/in+? 6asically is 0 the search for industry best practices that leads to superior performance1. 7onventional means of performance improvement focus on measurement of performance levels and assessment of competitive strategies. The distinctive feature of benchmarking is that it focuses on business and management processes. If 'e understand innovation as a business process) benchmarking is a particularly suitable tool. Measures are important but the emphasis is on improving performance through understanding of process and practice. There are three essential pre-requisites of benchmarking) a frame'ork to describe the processes to be compared) a focus on processes) and self assessment. The most successful frame'orks) such as the US 6aldridge 8uality &'ard have proven to be effective both for self assessment and e ternal benchmarking. The follo'ings are the basic steps involved in benchmarking+ "- 7hoose the processes to be assessed(benchmarked %- Revie' practices and performances of your o'n firm 2- 7ompare 'ith one or more of+ -a generic frame'ork reflecting good practice -practices 'ithin other part of your o'n firm -practice of other firms 5- Identify the gaps bet'een this and your performance 9- Identify reasons for the gaps :- Institute actions to meet or e ceed best in class practice >!- "enc!mar/in+? It 'as said that in this case benchmarking 'ould be used as a mean of self-assessment. Internal benchmarking ,comparison of current practices and performance against the criteria set out in the innovation frame'ork. is a prerequisite for e ternal benchmarking ,against other organisations. and is precisely a 'ay of self assessment. & tailor-made benchmarking for innovation could include topics as+ ;eadership Product innovation Process innovation Technology acquisition Resourcing Systems and tools
2

<efinitions and e amples 'ere taken from T'iss ,"##2. and ;ondon 6usiness School ,"##%..

6enchmarking is also an ideal 'ay to position the company and develop a strategy for it) including a technology strategy. Tool ( Tec!nolo+- )ort'olio anal-sis( >!at is Tec!nolo+- )ort'olio anal-sis? The technology base of a company can be categorised as follo's+ "-7ore technologies %- 7omplementary technologies 2- Peripheral technologies 5- =merging technologies 7orporate thinking is dominated by the core tec!nolo+-. It is central to all or most of the company>s products. The e pertise in this technology 'as the main contributor in the past success. & com)lementar- tec!nolo+- is an additional technology) kno'ledge of 'hich is essential in product design. & )eri)!eral tec!nolo+- is defined as one not necessarily incorporated in the product but the application of 'hich contributes to the effectiveness of the business. &n e ample of this is the application of IT in managerial systems. Emer+in+ tec!nolo+ies are ne' for the company) but may have a long-term significance. The developing of a core competence or the need for e ploratory research may *ustify it. The latter ,e ploratory research. provides the company strategic fle ibility to take advantage of arising opportunities. It is not of immediate importance in product development. T!e tec!nolo+- )ort'olio anal-sis directs attention to t!e needs o' t!e 'uture( T!is must "e com"ined %it! an e,aluation o' t!e com)etence o' t!e or+anisation to e#)loit t!ose needs( A s-stematic a))roac! could "e a))lied0 usin+ a )ro+rammes@com)etencies matri# in order to construct an in,entor- o' e#)ertise %!ic! could im)ro,e t!e e''icienc- o' RAB resource usa+e0 identi'- t!e la"orator-.s stren+t!s and %ea/nesses0 assist indi,iduals to identi'- and e,aluate t!eir o%n e#)ertise0 etc( Ta"le 1( Tec!nolo+- )ort'olio anal-sis(
Relati,e im)ortance Tec!nolo+/igh 7ore & 6 7 7omplementary < ? ? ? ? ? Current Medium ;o' /igh ? ? ? Future Medium ;o'

$ = 4 Peripheral @ / =merging ! A ? ? ? ? ? ? ? ? ? ? ? ?

>!- tec!nolo+- )ort'olio anal-sis? The information provided by this tool is a prerequisite for the design of a technology strategy. The formulation of this strategy requires the scanning of the environment ,economic) technological) etc.. to identify the opportunities and threats the company must face. Bonetheless) the election of optimal strategy that allo's the e ploitation of such opportunities and the overcoming of the threats) involves the consideration of 'hat might be possible ,the company>s capabilities.. Tool $( C!ec/list >!at is a c!ec/list? Is an evaluation technique commonly used for ne' products and technologies. It includes all the criteria 'hich need to be taken into account 'hen evaluating a pro*ect. This ensures that none is disregarded even though it may be difficult to evaluate many of them 'hen the pro*ect is initially selected. Research studies sho' that checklists are 'idely used but is surprising ho' fe' companies attempt to compile a comprehensive list as a basis for formal evaluation. T'iss ,"##2. sho's an e ample of checklist) reasonably suitable for most companies) involving the follo'ing aspects+ &. 7orporate ob*ectives) strategy) policies) and values 6. Marketing criteria 7. Research and development criteria <. 4inancial criteria =. Production criteria 4. =nvironmental and ecological criteria /o'ever) another e ample of list ,this time to evaluate the feasibility of a ne' product.) from an independent consultant 5) is simpler ,and therefore more suitable for a small company. and is presented belo'. ". %. 2. 5. 9. :. $. E.
5

Chat are the main features of the technologyD Cho is going to use the technologyD Chat) if anything do they use no'D Chat benefits or advantages 'ill they get from using the ne' technologyD 7an this product be madeD ,or a service deliveredD. /o' is the potential market segmentedD /o' much can 'e afford to spend in its developmentD Chat are the main technical targets needed to make the product meet user requirementsD

Aevin Parker. Seminar at Research Skills for Management course.

#. Cill the beneficiaries of the technology be the ones 'ho 'e ask to pay for itD "F. <oes the technology give us any 0spin-off 0 developmentsD "". &re there any things 'hich could stop the pro*ectD Tool &( 6erit num"er ;-stem( >!at is merit num"er s-stem? & common development of the checklist is the pro*ect profile 'here each of the criteria is evaluated against a standard of performance. In completing the profile a *udgement must be e ercised for each item based upon quantitative analysis 'here possible and compared 'ith a formal or informal understanding of 'hat constitutes 0very good1) 0good1) etc. A 'urt!er de,elo)ment is to de,ice a merit num"er s-stem) in 'hich the individual items are given a 'eighting in accordance 'ith their importance and each evaluation grade is also given a value. The calculation results in a merit number 'hich gives an indication of the 0value1 of the pro*ect. Merit number system is *ust a sophistication of the simple checklist and must be understood as a substitute 'hen circumstances make it desirable.

Creati,e )ro"lem-sol,in+ tec!niCues( In 'hat follo's creative problem-solving techniques are described. These techniques can be divided into analytical ,attribute analysis) morphological analysis) needs research.) and nonanalytical ,brainstorming) synectics) lateral thinking.. The first ones are designed to reveal ne' approaches to problems or ne' combinations through systematic search. The second ones are a response to the belief that the innovation process ,even formal RG<. is a creative one) 'hich could be managed but not controlled rigidly. These techniques aim to develop the conditions characteristic of the creative process) 'hithin an e perimental situation. >!- creati,e )ro"lem-sol,in+ tec!niCues? /aving a technology strategy) one of the most important things for a company is the ability to mobilise the creativeness of its employees and apply this creativity into day-to-day problem-solving. The ultimate ob*ective is to create 'hat has been called the 0learning organisation1. The po'erful resource of people devoted continuously to improve processes and creatively develop ne' products or thinking about ne' uses of e isting products and technologies) is one of the main sources ,if not the most important. of competitive advantage. Unfortunately) as it 'as said) there are no recipes) and the process of upgrade in-company creativeness is not a 'ell structured one. That is 'hy si creativeness improving techniques ,three analytical and three non-analytical. are proposed as a mean to begin enhancing the use of this po'erful resource+ people>s ideas. These problem-solving techniques are specially useful 'hen applied in a receptive environment ,open-minded and innovation-friendly.) in 'hich top management commitment has a lot to do. They are also an e cellent complement to 'idely used team 'ork approach to most innovation activities.

Tool 5( Attri"ute anal-sis( >!at is attri"ute anal-sis? Is the technique for analysing the attributes of a technology to sho' ho' they could be analysed in relation to their suitability in respect of a variety of practical applications. Some of these applications are not immediately apparent. ;isting the technological attributes does) ho'ever concentrate the mind on the essentials of the phenomenon) thereby increasing the probability that the imagination 'ill conceive an idea for a practical use. & similar approach has been developed for analysing the attributes of a product. &n e isting product is analysed in detail relating each part to the purpose it serves. The individual part can then be e amined to determine 'hether it can be improved or used in a different combination to create a ne' product. The follo'ing questions 'hich should be considered during the analysis) have been suggested- Put to other usesD &daptD ModifyD ReduceD SubstituteD RearrangeD ReverseD or 7ombineD Tool 7( 6or)!olo+ical anal-sis( >!at is mor)!olo+ical anal-sis? & technique that involves the identification of the main parameters or functions of a problem) together 'ith the various 'ays of achieving each of them. =very combination represents a possible solution. &n e ample is sho'n belo'. In this problem there are three functions &) 6) 7H & can be satisfied in three 'ays) 6 in t'o 'ays) and 7 in four 'ays. Function & 6 7 Alternati,es &" &% &2 6" 6% 7" 7% 72 75

Total number of possible combinations &67I 2 % 5I %5 In this case there are %5 different combinations 'hich might satisfy the problem. In a practical e ample some of these combinations 'ill already be kno'n) some could be re*ected as nonfeasible. but some might reveal ne' possibilities not previously thought of. Tool 8( Needs researc!( >!at is needs researc!? Is the analysis of comple technological systems incorporating a large part of technological subsystems. The most common result is the improvement of subsystem performance and not the replacement of the total system. It is vital in a problem of this nature that RG< investment is devoted to that part of the total system 'here it 'ill bring the ultimate user the ma imum benefit. Beeds research is a modelling technique 'hich enables a thorough investigation of the total system performance) in relation to forecasted user needs. The important features to note in needs research are+

"F

"- The analysis starts 'ith the users needs. %- The use of technology forecasting to forecast these needs at some future period. 2- The employment of a modelling technique to relate subsystem and system performance to those needs. 5- The e perimental determination of 'here investment can yield the best results before a project is defined. T!e arc!itecture o' most so't%are )ro+rammes 1a s-stem o' su" )ro+rams0 eac! )er'ormin+ di''erent 'unctions20 ma/es t!is tool 1at a 'irst si+!t20 an e#tremel- use'ul one 'or a so't%are com)an-( T!e im)ro,ement o' t!e s-stem 1t!e a))lication )ro+ram0 'or e#am)le20 t!rou+! su"s-stems modi'ications %it!out c!an+in+ t!e %!ole0 is t!e %a- manso't%are com)anies u)+rade its )roducts( ;uccessi,e ,ersions o' t!e same )roduct allo%s t!em to co)e %it! ne% user.s needs. Tool 9( Brainstormin+( >!at is Brainstormin+? Is a completely unstructured approach to group problem-solving. & group of people gathered together interact to generate ideas spontaneously. Bo evaluation is permitted during the brainstorming session and) although no attempt is made to relate the ideas) they o'e a great deal to mutual stimulation and cross-fertilisation. The proceedings are recorded for subsequent detailed e amination. The most common application of the technique has been to generate ideas for ne' products) and the creation of advertising slogans. Tool :( ;-nectics( >!at is ;-nectics? Is a structured group technique C. @ordon,"#:". devised for achieving a creative problem-solving climate. It aims to achieve+ freedom from constraints imposed by the problem as stated) elimination of negative responses) deferred *udgement) and escape from the boundaries imposed by orthodo thought patterns. The problem-solving process) sometimes called an 0e cursion1) consists of the follo'ing main stages+ "- & statement of the problem as given. %- &nalysis of the problem. 2- Immediate suggestions or 0purge1 5- Statement of the problem as understood. 9- Increasing the 0metaphorical distance1 by means of+ ,a. direct analogy) ,b. personal analogy) ,c. compressed conflict. :- Possible repetition of 9 in a different conte t.

""

$- 4antasy force fit. E- @eneration of possible solutions) or 0vie'point1. The inadequacies of an e tremely brief 'ritten description of a technique) both emotional and e perimental) are obvious. 4or an e planation of a greater length see @ordon ,"#:".. Tool 1<( Lateral t!in/in+( >!at is lateral t!in/in+? Is a technique developed by =d'ard de 6ono that recognise the same underlying principles of creativity of Synectics. The term lateral thinking) describes the characteristics of creative imaginative) thought 'hich distinguish it from the normal logical thought process) he calls vertical thinking. 6efore searching for ne' ideas it is useful to e amine current ideas and identify the ma*or influences giving shape to them. The things to look for include+ dominant ideas 'hich unduly influence and constrain the e amination of a problemH tethering factors 'hich are included 'ithout re-evaluation in every solution to a problemH polarising tendencies 'hich make it difficult to assume a position bet'een t'o e tremesH acceptance of boundaries 'hich unnecessarily restrict the area of investigation through preconceptions of 'here the solution of the problem ought to lieH and assumptions. = amination of the influences constraining the formation of current ideas leads to the development of a methodology to avoid them. &mongst the techniques he suggest are+ questioning- asking 'hyDH the rotation of attention bet'een different aspects of a problemH the forced generation of a quota of alternative solutionsH changing the conceptH dividing and subdividing the parts of a concept or conversely) bridging the divisions bet'een the parts in a ne' 'ay. The most interesting techniques relate to the introduction of discontinuity into problem-solving in order to break the established pattern. This can often be achieved by the chance introduction of 'hat at first sight may appear irrelevant. Thus e posure to irrelevancy can be of great value as a stimulant.

$- Tools t!at %ere not descri"ed in t!e course(

Tools that help to capture customer>s preferences and needs and to improve the effectiveness of design 'ould have been suitable for this case. = amples of these tools include+ 8uality 4unction <eployment) Product and process 4ailure Mode and =ffect &nalysis) etc. &nother set of tools) the ones commonly used in continuous improvement programmes) could have been of much use. Some e amples are -as described in 6essant) ,"##5.- Pareto analysis and cause-effects diagrams. Some more comple statistical tools for the same purpose are also mentioned in the same 'ork.

"%

&- Re'erences(
<e 6ono) =. Lateral thinking for management, Mc @ra' /ill) "#$". @ordon) C. !. !. Synectics) /arper G Ro') "#:". ;ondon 6usiness School) Innovation. Self assesment and benchmarking, <raft) !uly "##%. T'iss) 6. Managing technological innovation, Pitman Publishing) "##2. 6essant) !.) 7affyn) S.) @ilbert) !.) /arding) R. and Cebb) S. improvement, Technovation ,"##5. Jol "5 Bo " pp "$-%#. ediscovering continuous